POLITICO Brussels Playbook, presented by Siemens: Schulz on the line — Is free trade dead?

Portugal defeated France 1-0 in the Euro 2016 football championships. Tunku Varadarajan writesthis was Portugal’s greatest achievement as a nation since the day it was admitted to the European Economic Community in 1986. http://politi.co/29FWnfH

MARTIN SCHULZ IS ABOUT TO CALL JEAN-CLAUDE JUNCKER … “He’s in the habit of talking to me on the phone each morning between 7 and 8 a.m. It’s a habit I sometimes wish he could drop,” Commission President Juncker told Spiegel, in a joint interview with Schulz, that is worth reading in full. http://bit.ly/29xlWNJ

Notable: Juncker and Schulz say they are a “proven team,” and reject questions about whether their ongoing combined efforts have succeeded, or are appropriate, given their respective jobs are to keep each other accountable. The pair also discuss Juncker’s broken promise to make Schulz his first vice president, ongoing reports about Juncker’s health and commitment to his role, and Juncker’s wish that Schulz keep his job in 2017.

**A message from Siemens: Siemens is aiming to be the world’s first major industrial company with a net-zero carbon footprint by 2030. To achieve this goal, the company will invest some €100 million over the next three years in order to reduce the energy footprint of its production facilities and buildings. Learn more.**

Key Juncker quotes:

— Juncker apparently lost a bet with Commissioner Hill. “I put my money on Brexit.”
— “I am not an advocate of the ‘United States of Europe,’ nor am I an integration fanatic. You can’t deepen the European Union against the wishes of the European countries.”
— Juncker admits to a transactional relationship with Alexis Tsipras: “I would describe that as a utilitarian friendship … it seemed appropriate to me to present myself as a friend to Greece … My friendship with Martin, by contrast, is completely different in that it goes far beyond politics.”

Key Schulz quotes:

— “For many people, politics in Brussels and Strasbourg might as well be happening on another planet.”— “Complementing the nation-state as it reaches its limits amid globalization: That is what Europe must offer.”

POLITICO SYMPOSIUM — IS FREE TRADE DEAD? As the outlook for free trade deals gets gloomier, POLITICO asked experts, trade representatives and writers from across the political spectrum to weigh in. Michael Froman, the U.S. trade representative, doesn’t believe global trade “is going the way of VCRs and floppy disks.” Dan Costello, the ambassador of Canada to the EU, believes while free trade remains “a critical source of good middle-class jobs, renewed growth and shared prosperity … Concerns about free-trade agreements, however, are widespread and legitimate.” More here: http://politi.co/29rqIeY

Champagne and scallops on the menu after refugee camp tour: Tomorrow, after visiting the refugee camp at Calais, MEPs from the Civil Liberties Committee will drink champagne and dine on scallops at local culinary hotspot La Sole Meuniere. See the menu, brought to you exclusively by Playbook: http://politi.co/29qdrH6

MEPs visit Syrian President Assad: A group of MEPs led by the Green Left’s Javier Couso Permuymet with Syrian President Assad and the country’s parliament speaker in Damascus this weekend. Couso called for sanctions to be lifted and criticized U.S. “arrogrance.” Reuters | Military Times

MEPs in the dock: Parliament’s Legal Affairs Committee will discuss whether to allow five MEPs to be prosecuted in their home countries. They include Lega Nord’s Mario Borghezio, accused of racial discrimination against fellow Italian MEP Cécile Kyenge, and former Socialist MEP Rosario Crocetta, now president of Sicily, accused of misconduct in relation to the protection of a heritage site. http://bit.ly/29zIOi8

COMMISSION …

Juncker to interview Lord Hill replacement: Sir Julian King will be grilled this morning to ensure his “independence is beyond doubt.” http://politi.co/29HBE9v

EUROGROUP — UPDATE ON STATE OF EURO ECONOMY: The Commission and the ECB will debrief the eurogroup on Brexit effects.

EU EXAMINES EUROPEAN UNEMPLOYMENT BENEFITS SCHEME: The Slovak EU presidency, the European Commission and the Center for European Policy Studies are holding an all-day meeting today about the feasibility of a European unemployment benefits scheme, and whether it can act as a “macro-economic stabilizer.”

MIGRATION — FLOWS TO GREECE DOWN 97 PERCENT: William Booth for Washington Post from the island of Lesbos. “The open turnstile toward a new life in Germany or Sweden has turned into Europe’s waiting room.” http://wapo.st/29G3ZAc

MIGRATION — SLOVAK PRESIDENT STEPS AWAY FROM PM FICO: Andrej Kiska, Slovak president, told POLITICO “many politicians use the threat” of migration to gain popularity. “I have a little bit different approach than our previous government or our prime minister,” he said, referring to the anti-Muslim-migration stand of Prime Minister Robert Fico.

UK LEADERSHIP …

New party? Should Andrea Leadsom beat Theresa May to 10 Downing Street, and Jeremy Corbyn remain the opposition leader, centrist MPs from both leading parties are discussing forming a new party, report Daniel Boffey and Toby Helm. In the meantime, get out your popcorn.

May launches national campaign in Birmingham today. She will give a speech that may appeal more to the Labour faithful than the Tories. “The Conservative Party will put itself — completely, absolutely, unequivocally — at the service of working people,” she will say. She is expected to promise to enact changes that will ensure consumers and workers are represented on company boards, and make shareholder votes on corporate pay binding.

The Eagle has landed: Angela Eagle, the former minister and shadow business secretary, says Jeremy Corbyn could be forced to sit out the party’s upcoming leadership contest. Corbyn would need the support of 51 U.K. MPs and MEPs to stand, and his support levels appear just above or below that number. Tom McTague http://politi.co/29GnHsD

WHAT BRITONS ARE TALKING ABOUT: MOM-GATE …

The spark: Andrea Leadsom sparked a weekend of fiery debate after an interview with Rachel Sylvester of the Times. “Being a mom means you have a very real stake in the future of our country,” Leadsom said. Opponent Theresa May “possibly has nieces, nephews … but I have children who are going to have children who will directly be part of what happens next.”

The transcripts: Leadsom claimed she said the “exact opposite” of what was printed, and that Leave-supporting Times newspaper was guilty of “gutter journalism.” The Times released both audio and written transcripts of the interview, which showed they reported the comments accurately. LISTEN: http://bit.ly/29I3Mtq

The reaction: Ministers called on Leadsom to withdraw from the Conservative leadership race, with Priti Patel calling her too divisive to win an election. Around 20 MPs threatened to form a new party if she won, and Leadsom eventually apologized.

Facts of life: Leadsom (along with fellow Leave campaigner Gisela Stuart) has repeatedly spoken of motherhood on the campaign trail. Ruth Davidson, the Scottish Conservatives leader, got so sick of the pair’s motherhood message, she memorably shot back during a televised national debate in June that there were also mothers who also supported Remain. http://bit.ly/29xM0rW

ARE THE ENGLISH THE EXCEPTION OR THE RULE? Miguel Otero-Iglesias reckons it’s the former. “Those who think Brexit is the start of the EU’s unraveling should think twice. Why is it that despite the euro’s apparent failure, the eurozone has added three new members and not lost a single one over the past five years? If the EU is such a disaster, why is it that Scotland is so keen to stay in? What does it say that England’s younger and best-educated generation want to stay in the EU?” http://politi.co/29rK2c1

BREXIT EFFECTS …

The 48 percent are not going quietly: Whether it is legal challenges, calls for the pro-Remain parliamentary majority to assert itself, or demands Remain should be part of the exit negotiations, it’s clear Leave winning the referendum battle is not the same as winning the Brexit war. http://bit.ly/29q8RZp

Barristers sign letter arguing EU referendum result did not set a threshold for leaving.http://bit.ly/29u4QhM

Trade unions from 16 countries meet to form labor rights firewall: Luca Visentini of the European Trade Union Confederation told Playbook he fears many EU rights may disappear: “European workers in Britain will be affected, even expelled,” he claimed, also expressing concern that Juncker’s “social pillar” plans “will be stopped or slowed down.”

NATO SUMMIT WRAP …

NATO creates intelligence division: One of the big, but underreported takeaways from the weekend’s summit: The allies will form their own joint intelligence operation. Associated Press: http://apne.ws/29ZXhkR. The summit communique: http://bit.ly/29v2geD

EU and NATO grow up: For the two Brussels-based organizations, “it has taken five major crises” to realize “it was time to set aside their differences and cooperate.” Judy Dempsey http://ceip.org/29H4tmC

FRANCE — THE REGIONS THAT GLOBALIZATION FORGOT: Northern France is one of many industrial regions in Western Europe that globalization forgot, writes Joanna Plucinska. “Factory automation and outsourcing are eating French jobs, leaving generations of workers ill-equipped and left behind … Critics say the lack of national support for industrial digitization is keeping France from competing with Europe’s leading industrial players.” http://politi.co/29PbBg3

ISIL SHRINKS: IHS reports: “Territory controlled by the Islamic State shrunk by 12 percent in the first six months of 2016,” to fewer than 70,000 square kilometers, roughly the size of the Ireland.

Top tweet: “I don’t want black men shot at traffic stops. I don’t want cops shot by snipers. I don’t want kids shot at school. I don’t want any of this.” http://bit.ly/29qwlJH

‘I’m a black ex-cop, and this is the real truth about race and policing,’ by Redditt Hudson in Vox. “On any given day, in any police department in the nation, 15 percent of officers will do the right thing no matter what is happening. Fifteen percent of officers will abuse their authority at every opportunity. The remaining 70 percent could go either way depending on whom they are working with.” http://bit.ly/29Eny90 h/t Daniel Lippman

SAY GOODBYE, SAY HELLO: Mike Allen, the founder and godfather of the POLITICO Playbook family, has sent his last Playbook (read it here: http://politi.co/29xqKmf). From today on in Washington D.C., it’s Anna Palmer, Jake Sherman and Daniel Lippman who’ll bring you your guide the day ahead and the lingering buzz.

COMING TO BRUSSELS: Two new arts markets. From 10 a.m. to 6 p.m. on Saturday there’ll be an creative arts market near the Jeu de Balle, and from noon Saturday there’ll be a Brueghel art market on Place de la Chapelle, just up the street towards the Sablon.

APPOINTED: Former Commission president José Manuel Barroso is set to become non-executive chairman of Goldman Sachs International. Barroso replaces former European commissioner Peter Sutherland. http://on.ft.com/29F8DNw

HITCHED:Simos Piperidis of Cambre Associates and Lina Barauskaite of DG Competition tied the knot on Saturday in Vilnius.

**A message from Siemens: By setting itself the ambitious goal of becoming carbon neutral by 2030, Siemens is aiming to show that cutting your carbon footprint is not only technically possible but also financially profitable. With today’s technologies, it’s easier than ever to increase efficiency. And while this requires substantial investment, it will soon pay for itself. Cutting your carbon footprint is not only good corporate citizenship ‒ it’s also good business. Siemens will invest some €100 million over the next three years in order to reduce its energy footprint. By implementing innovative technologies ‒ such as energy management systems for buildings and energy-efficient drive systems for manufacturing ‒ the company expects to slash energy costs by €20 million a year. In other words, the investment will be amortized in less than five years. Learn more.**